“We have received the approval of the regulatory body. They agree that the deal is acceptable,” says Sibcem’s VP. “It will not lead to a decrease in competition in the cement market, or violation of consumer rights.”
Meanwhile, Topkinsky Cement received an order to carry out actions aimed at ensuring competition in the market of common cement within the geographical borders of Western Siberia. Sibcem currently owns a 49.9% stake in Iskitimcement. In 2013, the holding already applied to the FAS with a request to approve the takeover but was refused.
In the first half of 2020, the holding intends concluding management contracts with Iskitimcement and the Angarsk cement and mining plant (Angarskcement) in the Irkutsk region, where Sibcem has a 50% stake as of November 2019. On November 26, it became known that the holding, was seeking to acquire 1% of Angarskcement through Topkinsky Cement. It would have brought Sibcem to a controlling interest in the company. According to the vice-president of investment development Sibcem intends to increase its share in the Angarskcement to 100% in 2020.
Sibcem, the holding intends addressing a number of production and environmental issues after the control over Angarskcement and Iskitimcement is secured, Alexander Cherepanov told at a press conference.
The vice-president described Iskitimcement as “a vulnerable enterprise in terms of geographical location” implying the supplies from Kazakhstan and the Urals present a competitive issue.
- Iskitimcement is a leading cement producer in the Novosibirsk Region. The company currently produces six types of cement, supplies it to the regions of Western Siberia, the Urals, the Far East, the Volga region, and Kazakhstan. Volumes of production in 2019 should reach 1 million tons.
- Angarskcement is a leading cement company in Eastern Siberia, with a capacity of 1.3 million tons of cement per year.
- Topkinsky Cement Plant is the largest cement producer beyond the Urals, producing products in a wet way. The plant's capacity is 3.7 million tons of cement per year.